Facebook's Cryptocurrency Could Be a $19 Billion Revenue Opportunity Says Barclays


 
 
01:54 03/16/2019

Facebook FB  has been developing a cryptocurrency called 'Facebook Coin' and according to one firm, it could become a $19 billion revenue opportunity.

Barclay's analyst Ross Sandler has said, 'Payments could help Facebook develop an entirely new revenue stream aside from advertising — something “sorely needed at this stage of the company’s narrative.'

“Merely establishing this revenue stream starts to change the story for Facebook shares in our view,” Sandler said.

“Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders,” Sandler also said.

“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today,” Sandler added.

According to a Bloomberg and New York Times report, Facebook is making the cryptocurrency for global payments that will be tied to the value of traditional currencies and available to use through its messenger “WhatsApp.'

Earlier this year the New York Times reported that Facebook has told exchanges it expects to get a product out in the first half of 2019.

The publication cited “four people briefed on the negotiations.'

Bloomberg reported last year that Facebook was reportedly making a cryptocurrency for users of the messaging service WhatsApp and that the token will focus on the remittances market in India.

Last May David Marcus, the head of Facebook’s messaging app Messenger, announced the formation of a blockchain exploratory team at Facebook. He said at the time, “I'm setting up a small group to explore how to best leverage blockchain across Facebook, starting from scratch.”




This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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